Singapore commodities firm Olam International announced it had "very limited exposure" to brokerage firm MF Global Ltd., whose shares have been hit by speculation over liquidity problems.

Olam also denied that banks are pulling credit lines because of its links to the Bermuda-based broker.

Its stock rose 3.3 percent in Singapore trading, after the company announced that MF Global accounted for less than three percent of its hedging and stated that the company continues to honour all its obligations to Olam.

"We will be more than able to meet our obligations,'' Olam CEO Sunny Verghese said.

Olam supplies ingredients to companies such as Kraft Inc., the world's second-largest food maker, and uses brokers to hedge against price changes.

MF Global Ltd., the world's largest broker of exchange-traded futures and options contracts, saw its shares plummeted on Tuesday on speculation that customers were withdrawing cash from it after Bear Stearns Cos. sold itself to JPMorgan Chase & Co. to stave off bankruptcy.

The "business continues to perform exceptionally well," CEO Kevin Davis told employees in a letter sent on Wednesday and obtained by Bloomberg News. "Events occurring at Bear Stearns over the weekend provided fuel for untruthful market rumours yesterday which considerably hurt MF Global's share price," Mr. Davis said in the letter. "I want to personally assure you that yesterday's rumours were entirely unfounded and that we maintain a strong capital position."